It is up because all mreits are up as the bond mkt rallied. If you want to do something helpful support the activists and pressure idiot management.
Seeking Alpha comment to my post:
Author’s reply » Thanks for your comment. I agree that that the discount to book is severe, but I'm not convinced that book value represents the underlying value of the company because of the ongoing conflicts of interest. Since a stock buyback would decrease management compensation, I don't think management will get behind it.
If management is replaced, I would need to reanalyze the company to set a price target and would need to discount for the costs of golden parachutes or litigation. If the market values of the assets are actual representative of the values they could be liquidated for, then I think liquidation might be the best strategy.
I looked into the proxy fight quite a bit and came to the conclusion that the activist group had a pretty solid assessment of the situation. Since a majority of the shareholder's voted with management, they are left with the consequences: A poorly performing company.
I was deeply disturbed that proxy research firms were supporting management. I wish I had access to more information on how they performed their due diligence and who compensated them for performing it. Since I do not have that information, I must stick only to my research.
One note to the activists: There is a comment in the company statements that limits the amount of control that can be held by an individual or beneficially of an individual, so anyone considering a large position with the intent of improving management should have legal counsel as well as financial. Again, my education is in finance, not law, so I won't hazard a guess as to how the courts would interpret anything.
Please read today's article in Seeking Alpha. Unless management goes back to buying back stock in large quantities (which they promised to do and stopped do as soon as the proxy was over); then this stock will never get close to 6.
ANH down again more than any other mtg reit after earnings. Please call Lloyd and ask him to continue buying back stock aggressively until discount to book is 5% or less!
Or better yet encourage him to sell. Next proxy season remember Lloyd's lies and vote with the activists if you prefer making money v. losing it.
Please see Arthur Lipton's piece in SA (and in Yahoo) about how Lloyd has reneged on his promise to buy back stock.
Of course ANH is by far the lowest yielding MORTGAGE REIT which is the appropriate peer group (not general REITS which includes all the property REITs). This stock will languish until Lloyd goes; the company does not stop buying back stock until discount to book is less than 5%; or it liquidates.
Holy reversal batman!! ;-) Might we have a full day reversal and close above yesterdays close??
This company now down to 5.25; about a 15% discount to book; continues to woefully under perform. Also it appears stock buy backs ceased as soon as Lloyd the idiot won his proxy battle. Perhaps we can we sue the worthless proxy advisory firms for malpractice?
Note the horrible performance of ANH since the 3 agencies advised voting with pathetic management and it became apparent that Western would lose the proxy fight. See how ANH lags its peers - such as CMO and AGNC - from the same point in time. For shame - the institutional investors who voted with management are clearly clueless and/or not paying any attention.
Conversly if you want the stock to go down; vote with management. Mark my words that a vote for LLoyd and his buddies is a vote to have the stock go down substantially!
You are exactly right. Note that since the ISS report the stock has gone down as anything that makes Western less likely to win the proxy fight HURTS THE STOCKS VALUE! Please vote thew GOLD proxy if you want to make money. It is that simple.
Idiot - 1/12 is the monthly fee. So it is 1.2% annually - which is what I said! Why do you think Lloyd pushed to change to an external management structure? For the good of shareholders or for his personal benefit?
Are you really this stupid? Don't paid pumpers have to have a high school degree?
Are you stupid or just trying to fool uninformed readers of this chat cite? After 2011 Lloyd got compensated by the external manager which is owned by Lloyd and his friends. The external manager that LLoyd jammed thru as he realized it is to his benefit and makes it more expensive to fire him. He is still paid mid 7 figures. So which is it ? Is it stupidity or fraud that is causing you to write the above lies? Please tell me?
Let me help you. FYI Lloyd jammed the external compensation "boondagle" thru in 2011/2012 due to
apathetic shareholders. It was and is a scam. In addition to the fees paid to LLoyd in the proxy; the external management company that HE CONTROLS gets paid "on 1.20 of our equity (annually)...regardless of the performance of our investment portfolio." (page 45 of annual report). This is why LLoyd had to be dragged kicking and screaming to buy back stock as any dimunition of equity hurts his compensation (so the shareholders be damned). Doing quick math; multiply 1.2% times the shareholders equity shown in last press
release; gives you the additional compensation to Lloyd and his friends of roughly $10.4 MILLION. bucks.
LLoyd is indeed incompetent and wildly overpaid.
Look at proxy page 23. In 2011 Lloyd made $4,166,542. Then see this: "As a result of the Externalization
effective as of December 31, 2011, our only Named Executive Officers are our statutory officers. To see what Lloyd and his coterie of incompetents got p[aid after 12/31/11 you have to see what ANH paid the external managers. Here is a hint - it was way way way too much; particular as performance sucked.
Lloyd earns millions. Your numbers are made up. He even took the management contract external so he could lock in 3 years compensation of he got fired.
CBNK is dog meat. They are even worse run than HBNK.
Both stocks are flat to down over the last year; far under performing the sector. Both should be sold.